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Are there any known issues installing an internet-facing SharePoint 2010 with Active Directory Lightweight Services or is it a logical choice?

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Honestly, I'd say go for it. I don't see any outstanding issues with AD LDS. It's still not even a year old technology. I'm assuming they had integration with SP2010 in mind when deploying it. – Mike Jan 26 '11 at 15:33
up vote 1 down vote accepted

There's no problem using AD LDS for authentication with a internet facing SP2010 site. Consider using other AuthN methods such as LiveID or OpenID if you don't want to handle the user management yourself.

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